Tullow Oil has completed debt refinancing of $2.5 billion following the resolution of a border dispute between Ghana and the Ivory Coast. The $2.5 billion of credit facilities are split between a commercial bank facility of $2.4 billion and an international finance corporation facility of $100 million. The refinancing relates to “reserves based lending”, which is an asset based financing technique that is unique to the oil and gas sector. The transaction, which was formally launched in early October following the resolution of the Ghana and the Ivory Coast border dispute, was materially over-subscribed and extends the maturity of the group’s existing reserves based lending credit facilities. Tullow has also decided to reduce the commitments of its revolving Corporate Credit Facility to $600 million from $800 million, ahead of the scheduled amortisation in January 2018.

Source: The Irish Times November 29, 2017 07:41 UTC